Continuity And Renewal At The Top: Performance Effects Of The Level, Extent, Type And Frequency Of Top Management Team ChangesRené Olie,
Mariëlle G. Heijltjes and
Ursula Glunk
No 59, Research Memoranda from Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization Abstract: This study examines performance effects of changes in the top management team using an eleven-year period longitudinal research design with a sample of 45 major Dutch multinationals. Since changes at the top are a multi-faceted phenomenon, we study the topic from four different angles. Results indicate that the level of change in terms of CEO versus non-CEO changes and the extent of change in terms of the proportion of managers entering or exiting the team do not influence subsequent firm performance. Type and frequency of change however do matter. Our results indicate that renewal of top management teams in terms of non-retirement exits and limited outside entries can be beneficial for firm performance in the following year, especially when exits and entries are well aligned. On the other hand, a certain degree of continuity is also warranted. Too many outside entries at the same time were found to be disadvantageous in the short-run, while many CEO successions in a row were found to be disadvantageous in the longer-run. Keywords: management and organization theory (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:dgr:umamet:2003059 Access Statistics for this paper More papers in Research Memoranda from Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
Swedish Business School at Örebro University.